1) Raw Coal Cost
All the costs occurred during the process of raw coal production, including material cost, labor cost, electricity cost, safety charge, coal mine environmental restoration fund and coal mine transformation fund, cost for simple reproduction and other costs.

Of which,
Material Cost: Cost of direct and auxiliary materials consumed in the process of coal production.

Labor Cost: Cost involved in the process of raw coal production, including wage, welfarism, laboring and medicare, etc.

Electricity Cost: Bill of electricity used for production of one ton coal, namely, the product of electricity consumption of per ton coal output and local electricity price.

Safety Fee: High-gas mine at 15 yuan/t and low-gas mine at 10 yuan/t.

Simple Reproduction Cost: The charge for maintaining simple reproduction collected from local mine is 10 yuan/t, and from key state-owned coalmine 8.5 yuan/t (including charge for maintaining simple reproduction and shaft/roadway maintenance).

Coalmine Transformation Fund and Coal Mine Environment Restoration Fund: started to collect in Oct of 2007, was respectively at 10 yuan/t and 5 yuan/t.

Depreciation Cost: Depreciation cost of fixed assets collected in a coalmine each year.

Others: Repair charge, afforestation fee, compensation of ground subsidence and enterprise entertainment expense and etc.

2) Mine-mouth Cost
Costs occurred from coal production to sales including production cost of raw coal, Coal Sustainable Development Charge, mine area charge, financial and sales expense and resource charge.

Of which,
Coal Sustainable Development Charge: It is collected for the sustainable development of coal industry from Mar 2007, based on the designed capacity of coal mines.

Resource Tax: Tax imposed on coal resources by the government. Currently, the standard for coal mines in Shanxi, Shaanxi and Inner Mongolia is 3.2 yuan/t.

Resource Charge: Calculated on the basis of 3.8 yuan/t relative to mine reserve and 40% of recovery.

Management Fee: Salary for personnel in charge of a coal mine and other costs related to mine management.
Financial and Sales Expense (FSE): Enterprise’s financial and sales expenses involved in coal production and sales.

Mine Area Fee: Administrative charges by local government, mainly including water resource preservation fee collected by the Water Resources department, safety inspection fee by Coal Safety Supervision Bureau, and fees apportioned by local government and afforestation fee, etc.

3) Washed Coal Cost
Cost of coal after being washed, 

Freight to Coal Washery: The short-distance freight from coal mine to coal preparation plant. Thermal coal produced in coal mines need to be transported to coal preparation plants for washing, except for these key state-owned coalmines which have set up their own coal washeries.

Washing Cost: Processing cost for washing one ton of raw coal.

Recovery Rate: The ratio of clean coal in raw coal after being washed on the basis of one ton.

4) FOR Cost
The cost occurred before coal was loaded onto wagons, including Mine-mouth Cost of coal, freight to railway station, platform charge and other fee.

Of which,
Freight to Railway Station: The Freight from coal preparation plant to railway station. Except for the clean coal produced in some key state-owned coalmines that own platforms can be directly transported to railway stations, clean coal from other coal preparation plants have to be transported to railway station by trucks.

Platform Charge: Charges for inventory, occupation, shunting and loading, etc.

Others: Commission fee for coal sales via an agent, rail plan fee, charges of the government on coal sales, etc.